Dctex99:
Are you refering to their Denbury purchase? XOM is setting itself up to be a major player in the area and it would not suprise me, looking at their capital structure, companies such as Oasis and Kodiak are in the mix. I also believe that the future drilling in the Eastern MT area might be conducted by one of these mega operators.
Dctex99:
Thanks for sharing this article. Legacy Reserves bought our mineral lease from Summit in May of this year. As the article stated, they are based in Midland, TX but they have an office in Cody, Wy. I have been in contact with their office several times since the buyout and I have been told that currently, they are researching the mineral areas whch were obtained. I have approx. 300 NMA that was previously held by Summit. This is in T30N;R59E area. After talking to the Legacy company landman, I feel like they will most likely sell the Roosevelt acreage prior to the lease expiration which is in early 2014. As the article stated, maybe one rig is in the plans for Legacy but they appear to be more of an investor than driller for future purposes. I think that they have also acquired more acreage in the Blaine County area and some production in the ND area. From what I have learned, they hold very little acreage in the Roosevelt County area. I feel that my area will leased again if the current lease expires but ND has been my best acreage by far. Hopefully, in the next few years, my MT acreage will become active.
My family owns mineral rights in Roosevelt co T29R51 sec 11 & 12. Inherited from our mother. she had rights leased back in 1960’s but nothing since and we have had no offers to lease since her death even though title to the rights has been transferred to her children. Just wandering why there is no interest from oil co to lease in this area
Jim:
Have you verified that the lease transfer has been properly recorded at the County Clerks Office in Wolf Point? Looking at the GIS map, no wells are loacted around your immediate area but many producing, plugged and shut-in wells are locatd in T29N;R51E to the W/SW of your area. The producing wells appear to be older wells and the operator is Nautilus Poplar,LLC. I am somewhat suprised that your family has not been contacted in regards to leasing. Possibly, seismic work has been previously conducted in and around your mineral and the results were not good. You might contact this operator (Nautilus Poplar,LLC) and discuss your matter as they appear to be the main operator in that T/R.
It does appear that in Eastern Montana they may be doing as ND is doing and going back to their pads that are doing reasonably well and are permitted for additional wells and drilling a 2nd or 3rd well. Ours is an “Ecopad” permitted for 4 and some in ND are permitted for 6 wells; all possibly pulling oil from different levels in the Bakken.
Because of this; some areas are NOT being re-leased at this time.
Hello all,
Does anyone have a website that gives a pretty solid graph of what to expect from a well, in terms of production, in Roosevelt County? Our LLC now has 4 wells producing, and they’ve all started out about the same, but am wondering what to expect 12 months down the road…and then 2-5 years down the road…and then how long each well is expected to produce and at what level will they produce?
THANKS…
Dave
Mr. Peterson, I wouldn’t put much stock in any answer you get. Are your wells already pumping instead of flowing? Some of my ND wells have been flowing for more than 4 years and a pump would increase their production but it’s up to the operator. One of my wells 3+ year old wells that is flowing produced over 30% more in August than it has in any month in the last year, how far they open the valve is also up to the operator. When the price of oil drops my wells production drops, which I understand because every barrel they sell at $75 a barrel is a barrel they won’t be selling for $90 a barrel. I never count on an oil check, just too many variables.
Thanks RW Kennedy,
That’s somewhat what I was wondering…yet…when I look at and read articles about well production, there does seem to be a “general standard” of production drop-off in the first year, second year, etc… Even in the oil companies presentations they present a graph that I’ve looked at…however…it’s really vague…and perhaps has to be by necessity.
The other “new” thought you offer is whether the wells are flowing or are being pumped. That I do not know and will have to find out!!
Thanks again,
Dave
And an FYI; without the Keystone pipeline, Whiting sold my oil in August for $81.04…could have been $5 more WITH the pipeline!! Thank you Obama for the long Delay so you could win your environmental vote!!
Dave, there are just so many variables. It depends on what kind of well you have. Bakken wells if allowed to flow at their maximum rate can decline 30% a month. One of my wells had an IP of 2698 bbl oil but was quickly regulated to around 1100 bbl a day and the decline was flat at first then 10% or less per month thereafter until the price of oil dropped then production dropped 4,000 bbl in one month, I think because every barrel of oil you sell for $75 is a bbl you won’t be selling later for $90 and waiting a few months for the price to go back up so you can make 20% more for each bbl of which there is not an unlimited supply sounds like a sound business plan to me. They were still producing, I think of it as a hedge where they are just storing some of the oil in the ground. Verticle wells have different characteristics. Many people think of the long or extra long lateral wells and forget about the verticle wells drilled into different formations which can have very respectable production and while not as flashy at first, could equal the production of the long lateral over the life of the well.
Yes, my newest well did over 10,000 barrels in January(that is over 1 million dollars gross) and all were excited! It was shut down for all of July and half of August; Bakken wells are just not consistent; you can check the state sites and study all the wells and very few can be trusted!!
And…if I read this correctly…“Keep the Day Job” at this point as this whole adventure is filled with unknowns!!
Is that the reading others get as well??
And, in all things, I remain grateful for the inheritance from grandparents!!
Dave
David:
Heed the advice given by Mr. Kennedy in that there are many variables and the decline rate will impact your royalty payments over time. Unless you have numerous acres, an outstanding roytalty %, and above average production, the advice to “Keep the Day Job” is very good advice and in general, the advice that all should adhere to.
Indeed…that’s been the plan all along. Every now and then I have a “hope” of retirement on this…however…it’s a gamble I’m not ready to take!! All inclusive, we own a total of 440 acres as our interest in the LLC…spread over 5 different sections and 5 different spacing units…thus 5 different wells…with 4 of them producing…makes life interesting!!
to add to this; well was shut down for 1 1/2 months WAITING for a workover rig to fix…
Richard:
If you will google: Montana Mineral Management, this site will give results of State sales of minerals. I’m not sure if this is what you are referring to. Lots of leases/minerals acreages will be expiring next year in this Eastern MT area. Should be interesting.
Does anyone know of a link or site about what BLM leases were sold in Roosevelt? Thanks
Thanks Charles, I have been under the weather for awhile & have not kept my eye on progress in Roosevelt
We are in 28n 22 & 28 51e. Our leases expire 1/13. We were offered 150.00 per acre & 18%. I declined the offer.
Richard:
EOG, Oasis and G-3 have drilling permits in the works. Just read about this in an article but I’m sure this will depend on the production figures one at a time. Don’t know what impact that the 11/6 election results will have on the industry but time will tell.